5 - Cash Flow

Question 1

What Are Examples Of Cash Inflows?
(5 Points)

Answer 1

~ Cash sales.

~ Payment from debtors.

~ Owners capital invested.

~ Sales of assets.

~ Bank loans.

Question 2

What Are Examples Of Cash Outflows?
(4 Points)

Answer 2

~ Purchasing stock.

~ Paying wages.

~ Paying debtors.

~ Purchasing assets.

Question 3

What Is Cash Flow?

Answer 3

Total amount of money coming into and out of a business.

Question 4

What Is Cash Flow Interest In?

Answer 4

Balance between the cash inflows and outflows, in terms of their relative size and timings.

Question 5

What Does Cash Flow Ensure?

Answer 5

Positive cash balance in order to be able to meet day to day expenses.

Question 6

What Is A Cash Flow Forecast?

Answer 6

Is a forward looking statement that tries to predict cash inflows and outflows in the future.

Question 7

What Is A Cash Flow Statement?

Answer 7

Is a backward looking statement that shows what happens to cash inflows and outflows.